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Half of SMEs no longer borrowing money

sme lite icon48% of small and medium businesses have turned their backs on borrowing money preferring to pay off their debts instead.

It seems that SMEs are more concerned with becoming debt-free than borrowing to increase growth.

The remaining half of SMEs have taken advantage of bank loans and finance offerings with more applications being accepted.

According to BDRC Continental, the business intelligence agency, the proportion of SMEs that borrowed money over the past 12 months has risen from 18% to 35%, compared with this time last year. Is it just a coincidence that more loan applications were approved by banks as well with a 15% rise to the year before?

Perhaps businesses are more likely to borrow now the uncertainty caused by the General Election has passed or maybe they’re just more convinced their loans will be approved with banks showing an eagerness to lend.